Nature’s Essence – Beauty and Healthcare products manufacturer is planning to venture into organized retail by opening Salon cum Stores on a PAN India basis.
Mr. Saurabh Nanda, Director of Nature’s Essence said,
We would be opening 100 stores, including 25 owned and 75 franchisee outlets by middle of 2009. The first three stores would come up in Delhi by September and the rest would follow across the country.
The company plans to setup 6-7 stores in each of the metros and the rest in other Tier-I and Tier-II cities only. The company is investing Rs 30 crore in the above said venture. Each store should be able to do sales of Rs 1.5 to Rs 2.0 mn after being operational for over a year.
The company hopes to have a turnover of Rs 100 crore a year from now and then to Rs 500 crore within the next 3 years. Currently it is mere Rs 35 crore. The figures look really aggressive when we have Kaya Skin, Veria Wellness, New U Health, Sally Hansen, Manipal Cure Care etc competing in the same segment. Any guesses who will dominate the segment or what has been your experience ?